Sales of French luxury group Kering nearly doubled in the second quarter. Comparable revenues rose by 95 per cent in the three months to end-June compared with a year ago, and were 11 per cent higher than their pre-pandemic 2019 levels. Growth was driven by North America, where retail sales were up by more than 260 per cent, and Asia. Gucci sales grew by 86 per cent over the period and account for more than half of the group’s revenues and 76 per cent of its operating profit. Fashion label Gucci is the star at Kering.

Kering will continue to invest and support its brands in the second half of the year but this would not come at the expense of profitability. While returning to substantial profitability, and leveraging the desirability of its brands, Kering is stepping up the pace of its investments in brands and strategic initiatives, notably to enhance the exclusivity and control of distribution. Kering has reached 88 per cent traceability for key raw materials and aims to increase the share to 100 per cent by 2025.

Gucci is celebrating its centenary year, keeping the buzz around the brand high with events and new collections, including one presented in April where Gucci designs were crossed with silhouettes and logos by Balenciaga, another Kering brand.

Filatex will increase polycondensation capacity by 50 TPD and set up additional manufacturing facilities for 120 TPD of polyester partially oriented yarn at its plant in Gujarat. The company is a manufacturer of polyester filament yarn and polypropylene filament yarn. Filatex currently has a polycondensation capacity of 1050 TPD at its plant. The polymer is used for manufacturing polyester chips, polyester POY, polyester FDY and polyester DTY.

Additionally, Filatex will replace two existing partially oriented yarn (POY) lines (144 ends) with two new POY lines (192 ends) along with replacing winders in one POY line with new winders. The company presently has a yarn manufacturing net capacity of 110 TPD at its plant at Dadra. This proposed project will increase the POY capacity of the plant by five TPD as well as improve the quality of the yarn produced.

Filatex is a game-changer when it comes to innovative products and the adoption of new technologies. The company has managed to maintain an edge over its competitors due to consistent product quality and low operating cost. It takes pride in its energy-efficient operations. Filatex has made rapid strides in exporting drawn textured yarn. Its present focus is on the polyester sector.

Century Textiles has sold its yarn and denim units to Manjeet Cotton. The company received a consideration Rs 62 crores for both the units. Mumbai-based Century Textiles and Industries is active in textiles, viscose filament yarns, cement, and pulp and paper. In the textile business, Century has two revenue streams: cotton fabric and denim units. The company has a vertically integrated plant at Bharuch for manufacturing cotton fabrics. The cotton division of is one of the oldest players in India and manufactures a wide range of premium textiles and supplies to many international players, including Royale Linen, Ralph Lauren, DKNY, Belk and US Polo. Century Textiles’ financial metrics have declined, mainly due to its high debt.

Manjeet Cotton is a diversified group with investments in raw cotton ginning, spinning, renewable energy, real estate and education. Founded in 1982 it has grown to become the largest ginner of raw cotton in India, with 1250 DBRs and operations spread across all the eight cotton growing states in the country. The company has 26 captive ginning and pressing units with a production capacity of over 1600 MT per day (10,000 bales), covering almost five per cent of India’s cotton production, and having a dedicated supplier base of over 4,00,000 farmers.

In recent years, China’s ginning capacity has risen fast, especially in 2020. The newly-added ginning capacity this year is due to delayed construction last year affected by the epidemic. Ginners may have higher enthusiasm to procure seed cotton this year as they have gained good profits last year, says a CCF Group report.

In addition to the expectations over high new seed cotton prices, market players also have certain expectations over the coming traditional buoyant season. Currently, cotton yarn inventory remains low as downstream traders and some end-users replenish stocks in advance. In short, Chinese cotton prices may continue rising amid the good fundamentals.

In the 2021-22 season, cotton planting areas in Xinjiang are expected to reduce slightly. Bad weather impacted the new cotton crop growing somewhat. In addition, cotton planting costs increased this year due to higher rents, fertilizer and water prices and the ginning capacity in Xinjiang continues to rise. Therefore, market players expect higher seed cotton prices in the 2021-22 season. The strong rise in cotton futures in July is mainly attributed to expectations over the high new seed cotton prices and the coming traditional buoyant season. The Central Bank of China cut the reserve requirement ratio by 50 basis points for all banks, effective from July 15, which brought a certain positive mood to the market.

The textile industry in Punjab’s Amritsar’s is grappling with the twin challenge of high raw material cost and low demand in the current Covid-hit market. The cost of textile manufacturing has increased considerably after yarn spinners and manufacturers of dyes and chemicals increased the prices of their products. On the other hand, a moderate demand for finished products in the market did not give them enough room to pass on the hike.

Over 1000 textile units in the district are engaged in manufacturing tweed, blazers, shawls, blankets, dress materials, suitings and shirtings. With a combined annual turnover of over Rs 10,000 crores, it offers employment to thousands of skilled and unskilled workers.

The hike in prices of yarn dyes and chemicals has prompted big domestic yarn spinners and manufacturers of these products to pass on the price rise to textile manufacturers. For instance, polyester cotton blended yarn before Covid-19 used to cost Rs 175 per kg and now it is Rs 250 per kg. Similarly, polyester filament yarn costs Rs 125 per kg and was priced at Rs 80.

Demand for textile products has been further affected by the rise in prices of final product due to increase in prices of input cost on its basic raw materials - yarns, dyes and chemicals.

Net sales of Century Textiles grew 111 per cent during the quarter. Ebitda (earnings before interest, taxes, depreciation, and amortization) saw a substantial jump of 289 per cent. The manufacturing businesses, in particular, witnessed a strong turnaround on the back of continuous drive towards product innovation, customer centricity and better financial management.

The company had posted a consolidated net loss of Rs 36 crores in the first quarter. The pulp and paper business performed well in the quarter due to a strong demand from the tissue and board segments. The textile business saw a major turnaround supported by a strong demand in the bed linen segment. The real estate business posted a significant jump in collections along with a steady leasing income. The business is expected to accelerate between August to December this year, in both the domestic as well as the export markets.

The upcoming festive season is expected to introduce a new normal for the textile segment. However the short to medium-term outlook for the Indian paper industry appears to be volatile. The packaging board segment is likely to see sustained high demand going forward. An increase in tissue per capita consumption is expected due to rising health and hygiene awareness.

US consumers are searching for jeans in a big way reveals data from product intelligence company Trendalytics. This is due in part to denim’s new cycle of loose fits and wider silhouettes. As per a Sourcing Journal report jeans searches are up 33 per cent since the same time last year and up 13 per cent since 2019. Searches for looser fits have more than doubled from 2019 and continue to grow. On an average, 6,40,000 people are searching for baggy styles, up 74 per cent since last year, with a heavy emphasis on mom jeans. But there are twice as many skinny products on the market as there are non-skinny.

Mom jeans, as well as their skinny counterpart, will continue to be top trends through 2021 followed by baggy jeans, flares and jeggings. Along with the skin-baring trends dominating post-pandemic fashion, bottoms that show some leg are considered styles to watch. Ankle jeans, flare cropped jeans and capri pants are all gaining traction as well.

Color denim is also having a moment. Purple is second only to black jeans. Purple accounts for 42 per cent of colored denim searches, followed by green and pink at 15 per cent, red at 14 percent, yellow at six per cent and orange at five per cent.

Over the last two decades, the contribution of cotton yarns in India’s total textile exports declined to 1 per cent approximately. As per a CRISIL report, the decline is mainly attributed to the lack of free trade agreements (FTAs) and increased competition from neighboring countries. The textile sector accounts for 11 per cent of India’s total merchandise exports, points a report in The Week. The sector also employs 45 million employees directly while 60 million employees are employed in related industries.

Over the last few years, India has been consistently losing share in cotton yarn market to competitors like Vietnam and China who benefitted by capitalizing on China’s falling share in the past five fiscals

Structural reforms to revive textile value chain

Indian textiles players also suffered due to the government’s reduction of export incentives in line with WTO guidelines. The CRISIL report does not expect the upcoming Remission of Duties and Taxes on Export Products (RoDTEP) scheme to benefit the sector much. However, it hopes, the government’s additional structural reforms will help revive the textile value chain.

The CRISIL report states, the recently announced PLI scheme for man-made fibres (MMF) and technical textiles will boost India’s MMF-based RMG exports. If implemented well, the scheme may help the sector enhance its export share over the medium to long term. However, it needs to be supported by continuous investments in infrastructure development.

The CRISIL report also highlights India’s failure to increase its RMG exports to EU and the US despite these being the largest RMG export destinations with 32 per cent and 27 per cent exports respectively in 2020. Meanwhile, benefitting from the abolition of quota system for developing nations, Bangladesh increased its exports to the EU while Vietnam’s exports to the US surged on acquiring most favored nation (MFN) status in 2001.

Need for FTAs and lower import duties

However, India now has an opportunity to regain its lost share, says the CRISIL report. The US ban on cotton and cotton-based products originating from Xinjiang region in China, presents Indian with an opportunity to re-establish relations with global brands.

India’s export of cotton yarn or fabrics and made ups grew at 69 per cent from January-May 2021 while RMG exports grew by 39 per cent. Even raw cotton exports grew by 55 per cent year-on-year basis during October 2020 to May 2021 to 5.8 million bales of 170 kg as the US and Brazil struggled with lower cotton production. The country needs to sign new trade agreements and lower import duties in key export destinations. Overhauling its product basket and restructuring its incentives schemes can help India rid itself of China dependency and increase share in global trade.

The apparel, textile, footwear, and electronics industries in Vietnam have been most harshly affected by COVID-19-related shutdown. There are more than 6,000 factories in Vietnam, which employ more than three million workers. Production shutdowns at footwear manufacturers have already caused supply chain disruptions for major brands, some of whom have begun using airfreight to get their products out of Vietnam as quickly as possible amid a shipping crunch. Also at risk of interruption are supply chains of other large companies that have their products manufactured in factories in Vietnam. The situation is likely to worsen in the coming weeks as the flow of cargo through Vietnamese ports increases. Should logistical operations deteriorate while production continues, there is a risk of warehouse space becoming scarce.

As many companies run operations at their manufacturing facilities amid stringent COVID-19 measures, thousands of workers have been locked down at the factories with sleep facilities and food provided by the company. Should the situation continue, exhaustion of workforce might occur, as not all workers are able or willing to spend a few months at the workplace. For a factory that has more than 500 workers it is not quite worth it in terms of organizing the food and living conditions in these makeshift conditions.

Sympatex Technologies has been certified as a B Corporation company. This German company develops, produces and distributes membranes, laminates, functional textiles and finished products.

The NGO B Corp was founded in 2006. There are over 4,000 certified B Corporations in more than 77 countries today. Some of these are Toms, Too Good To Go and Patagonia. All of them are united by the same goal to reconcile profit maximization with a social mission on their journey towards a responsible, environmentally sustainable and socially fair future for business. They aim at meeting the highest standards of social and environmental performance, public transparency and accountability in order to balance profit with purpose. They operate at the top of their class, excel in creating a positive impact for their stakeholders, including their workers, communities, customers and the environment.

The B Corp certification is based on a company's verified performance in the categories of corporate governance, employees and impact on the environment, customers and society. Every year, participating companies have to answer 200 questions on these categories, and the B Impact Assessment becomes more demanding every year. Sympatex has received the award for the second time. It was already recognized as part of the B Corp list of the best companies in 2019.